Super Retail Group Limited · ASX:SUL
Super Retail — Super Cheap Auto Group — Shareholder Meeting (October 2006)
18 slides from Super Retail's shareholder meeting presentation, Oct 26, 2006
Slide 1: Super Cheap Auto Group Annual General Meeting Presentation
Super Cheap Auto Group Annual General Meeting Presentation Peter Birtles Managing Director 26 October 2006 BOATING» CANPING « FISHISG
Slide 2: AGM Presentation
AGM Presentation ¢« 2005/06 Group Results * Group Strategy Update * Q1 2006/07 Trading Results
Slide 3: 2005/06 Group Results
2005/06 Group Results
Slide 4: 2005/06 Group Results - Highlights
2005/06 Group Results - Highlights * Underlying Group EBIT increasing by 11% * Supercheap Auto gaining market share and at the same time growing gross and net margins in difficult trading conditions * Average inventory investment across Supercheap Auto stores reducing by over 10% whilst improving on
Slide 5: Group Results
Group Results — 52 Weeks to 71 July 2006 Strong underlying profit performance driven by good control of gross margins and costs Strong cash flow arising from inventory reductions, while improving store in- stock positions Net Debt increased by circa $6m after $37+m investment in new SCA stores and B
Slide 6: Supercheap Auto Results
Supercheap Auto Results - 52 weeks to 1 July 2006 Store opening schedule on track ~ 234 Stores at 1 July 2006 ~ 196 in Australia and 38 in New Zealand Market share gains achieved in all major categories with both total and LFL growth ahead of the overall market ~ ABS report 2.2% decline in auto prod
Slide 7: BCF Results
BCF Results - 52 weeks to 7 July 2006 Business launched as BCF on 15 October 2005 ~ 4-stores traded under Camp Mart brand from start of the year until BCF launch Store Numbers: ~ 31 Dec 2005 - 12 ~ 1 July 2006 ~ 13 Camping and Fishing categories have exceeded expeciations. Boating has been in line b
Slide 8: Group Cash Flow
Group Cash Flow - 52 weeks to 7 July 2006 Strong cash flow performance driven by the reduction in net inventory investment per store — This has delivered a cash flow benefit of $12.1m New Store Fit-out includes $4.6m in SCA and $5.2m in BCF Activities in 2005 amp Mart acquisition Other Investin rela
Slide 9: Group Strategy Update
Group Strategy Update
Slide 10: Strategic Priorities
Strategic Priorities Reinvigorating the Supercheap Auto offer Expansion of the Supercheap Auto network Expansion of the BCF network Improving margins to fund reinvestment and grow profits Developing our Procurement and Supply Chain capabilities Developing our People 10
Slide 11: Reinvigorating the SCA offer
Reinvigorating the SCA offer « Chermside concept store trial proving successful — Customer reaction positive with sales uplift > 15% * Refurbishing 10 higher turnover stores by Christmas — Burleigh store refurbished at beginning of September — sales uplift > 15% — Rockhampton and Browns Plains store
Slide 12: Expansion of the SCA Network
Expansion of the SCA Network 239 stores trading today — 5 stores opened so far this year Development of 4 discrete formats — Existing ‘700’ format stores — ‘400’ format stores — smaller regional and higher rental urban locations — ‘200’ format stores — trial of shopping centre opportunities — Supers
Slide 13: Expansion of the BCF Network
Expansion of the BCF Network * 17 stores trading today « Opened 4 new stores at Midland and Cannington (WA) and West Gosford and Port Macquarie (NSW) since 1 July * Expect to open at least another 6 stores before Christmas « New Stores will be targeted towards NSW, WA, NT and Qid * Performance to da
Slide 14: Improving Margins and Developing Procurement and Supply Chain Capabilities
Improving Margins and Developing Procurement and Supply Chain Capabilities « Procurement gains have generated an 0.5% pt improvement in gross margin — further improvement anticipated in FY2007 * Overseas sourcing team operating out of Hangzhou offices * Relocated New Zealand distribution centre in J
Slide 15: Developing our People
Developing our People The successful development and retention of loyal and passionate team members will be a source of competitive advantage for the Group Introducing a suite of team member development programs - Leadership development — Product knowledge — Customer service — Process and systems kn
Slide 16: Q1 2006/07 Trading Results
Q1 2006/07 Trading Results
Slide 17: Q1 2006/07 Trading Results
Q1 2006/07 Trading Results ¢ Supercheap Auto — Strongest sales performance for 6 Quarters * discretionary and non discretionary categories performing well * increased promotional program compared to the prior year * positive response to new marketing campaign « 2 refurbished stores exceeding initial
Slide 18: Q1 2006/07 Trading Results - Sales
Q1 2006/07 Trading Results 1st Quarter Sales 2006 2005 Total LFL $m $m Growth | Growth % % Supercheap Auto Australia 113.6 103.1 10.2% 3.7% New Zealand 12.7 12.0] *5.8% 0.4% 126.3 115.1 9.7% 3.3% BCF 14.8 3.1 377% nia Group 141.1 118.2] 19.4% n/a * Total growth in New Zealand stores in local currenc
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